Update: Insurance Bureau of Canada blasts ICBC rate hike

If approved, the corporation says that would mean an average extra $3.70 per month.

It initially was proposing to raise rates by 6.7 per cent, but was able bring that down.

Transportation Minister Todd Stone says this was the best option.

“Government has allowed ICBC to move $450-million dollars from the optional insurance side of ICBC’s business to cover expenses on the basic insurance side. In doing so, ICBC was able to apply for a basic rate increase of 5.5 per cent.”

Stone says fraudulent and exaggerated claims are also the culprits behind rising rates, and added resources will take action to keep those numbers low.

But the proposed increase doesn’t sit well with the Insurance Bureau of Canada.

British Columbians pay some of the highest premiums in the country, and IBC’s Celyeste Powers is skeptical we’re not getting the best bang for our buck.

“With the lack of transparency, anyone with an interest kind of wants to see where these cost pressures are coming from, why we’re going to be paying more for auto insurance, it’s difficult to actually look into because the data is just isn’t there, it’s not provided.”

She says we’re losing out because we’re stuck with a public insurer.

“With this new rate increase, you are among the top two of highest premiums. At the same time the benefits on the government-run insurer side tend to be lower than on the competitive side.”

Powers says Nova Scotia and New Brunswick offer private insurance and have some of the highest customer satisfaction ratings and the lowest premiums in Canada, while ICBC has some of the lowest satisfaction ratings.

You mean the fiberals need more money in their general revenues so it’s time to raise rates on vehicle owners (read: raise TAXES on vehicle owners).

ICBC needs to be gone. I’m tired of my taxes (they call them premiums) being raised and I’m tired of subsidizing bad drivers. I’ve had NO at-fault accidents in nearly 20 years, my rates should NEVER go up.

I could actually stand an increase if for a moment I thought I was getting my money’s worth in service and performance. But that is obviously never going to happen. Just more money to line their pockets. I actually have to spend more money on yearly insurance than my car is actually worth! When does the madness end?

It is interesting that they always bring up the increases the face but never let us know how many more customers they get money from year to year. It only stands to reason that as the population increases more people will obtain vehicles. They have no choice but to buy ICBC’s basic insurance along with the licensing fees.

is ICBC serious? what do these clowns do with all our money? i believe personal injury rates do not constitute any kind of raise. we’re already scammed by the Fiberals and Liberals. this is a cash cow for their mismanagement. come on people, we need a massive protest against these greedy pigs!!! it’s never enough, what are their wages? this will never end unless we do something about it. just like a referendum.

Nail the fraudsters too- the ones who drive to and from work but pay the pleasure rate. And those who move to the Lower Mainland but keep their vehicles registered in the cheaper jurisdiction….including Alberta.
It’s not hard to check the student parking lots on campus.
I’ve never seen anyone checking the license plates at school parking lots.
And it should be easy to check the lots near the trains.

So if money from ICBC didn’t go into general revenue, what would you increase. The pst, msp premiums, personal income tax, what would be acceptable to you. This government (no government) is in business to make money. It goes back into services for you, and we hear from every public sector that they want more money for the service they provide, or how over worked they are (guess the private sector workers aren’t) and are always screaming for a raise. Really what “tax” would be acceptable to you and every other left winger to increase.

ICBC takes in money to cover the possible claims for the year and invests that income. Which I already stated. The interest gained is rolled into general revenue. Again, stated. Pay increases and operating expenses come out of increased rates. Claims over and above the collected amount is added into the next increase. Simple. My point is that ICBC could be self sufficient if the interest gained was put back into ICBC.

REVENUES HAVE to come from somewhere but accident free drivers should be given more of a break but this accounting system won’t allow for that.

Really, get a reality check. I guess you don’t get that 40% safe driver discount annually. If you are claim free for 5 years plus (not 100% sure on the time frame) you are allowed a freebie, no increase in your rates if you have an accident. Meanwhile, people who have accidents do pay increased rates, bad drivers pay increased rates. You left wingers figure everything should be subsidized by the government, cause you shouldn’t have to pay for anything.

Still didn’t answer my question. What would you increase to cover the shortfall? Do you suggest that people who live a healthy life style pay MSP premiums, a surcharge on couch potatoes. How about increasing income taxes, or the PST cause you know how well that went in Vancouver. If you have the answers maybe you should through your hat in the ring and run for premier.

Oh, so only vehicle drivers should have to pay more “taxes?” Yes, raise personal income taxes then, on everybody, not just those of us who drive. Or how’s about rolling back some of the public sector unions’ benefits, like make them pay for their own MSP premiums like the rest of us have to.

STOP COMPLAINING! Go back to the original source. Former NDP governments brought in taxpayer owned car insurance corporations in B.C., Saskatchewan, and Manitoba. All taxpayers in these 3 provinces now pay the highest car insurance rates, while the taxpayers in the other 7 provinces can shop the market for the best rates.
Remember, don’t blame the past NDP governments. BLAME THE IDIOT TAXPAYERS THAT VOTED FOR THE NDP.

Opinionated: YOU ARE UNBELIEVABLE! THE BIGGEST TURKEY, THIS SIDE OF CHINA.
The government can never sell ICBC. On the ICBC books, there is a amount on the financial statements showing money owed by the B.C. government.
On the government financial statements, there is a amount showing money owed to ICBC.
If ICBC was to be sold then this amount would have to go back to ICBC to clear that amount off for whoever bought ICBC.
Do not comment if you do not know what you are talking about.
The readers church mouse Ken280/KennyG was born yesterday.
The rest of us were not.
You too, better get a like and stop saving your bank account for someone else to enjoy.

Really: You forgot to mention that both Saskatchewan and Manitoba are also enjoying the cash cow.
REMEMBER THAT B.C. IS A PROVINCE IN CANADA, NOT A COUNTRY OF ITS OWN, so what happens in one province also happens in the other provinces.

The BC Liberal Party has been in control of government since 2001. They could have closed ICBC down if they had chosen to do so. They and the BC NDP could have also gotten rid of the property transfer tax brought in by the Socreds. Why didn’t they? Simple. Both entities allow the government of the day to increase general revenue by stealth and pretend they haven’t raised taxes.

Tell the whole story, not just the parts that suit your political view on things.

Cammie . . . no one will close ICBC down . . . just like they will not bring in Stiffer Qualifications for Drivers’ Licences in BC.
It’s an Industry . . . self perpetuating and a cash cow . . .
Crummy drivers banging into each other, keeps the insurance, body shops and dealers busy . . . and of course the Recyclers.

bert: How so? The B.C. Liberals will win the 2017 B.C. provincial election. Start your bucket list and make that lunch date with Christy.
Get a life and stop saving your bank account for someone else to enjoy.

been driving almost 35 years and no accidents,tickets nothing and yet I always seem to be paying more. I see people in 200000 dollar plus cars with N on it and they are careening all over the road and some off the road and I wonder how much of that am I/we are paying for?
Every where we turn there is a hand in our pockets and its always justified with….look where you live,god country!….you want services then you have to pay for it!….. The nickel and dimeing has to stop.Most in working people in Vancouver nowadays are merely surviving not living. I keep waiting of the backlash but it never seems to come.

Another shining example of how incompetent Government (any level) is at trying to run a “business” and handle money. Why, oh why, do so many people scream for more Government control of things. Everything they touch turns into You-Know-What.

Another Liberal money snatch. Does ICBC not grab the sizeable profits? This not the way Dave Barrett set things up. Oh well, one day there will be an election, and crooked Christy will get turfed out on her pratt. If you dwell on all mandatory costs a person has to experience, 5.5% here, 4% there, I am amazed anyone ends up with any spendable income.

EbN: You are also a turkey. UNBELIEVABLE!
Yes the elections will come and go.
On Monday, the federal NDP will go down once again to 3rd party status in the federal parliament.
On April 16th, 2016, the Manitoba NDP government will be defeated.
In 2017, the B.C. Liberals will win the provincial election.
The Alberta NDP government will only be a one term government just like the NDP was in B.C., Ontario, and Nova Scotia. Remember the NDP in Alberta did not win the election on the NDP name. They won it because of VOTE SPLITTING, WHICH THE NDP WILL NOT ADMIT TOO.
If you cannot accept facts and reality and keep harping on lies and propaganda, then get off this site. Enough is enough!

Dale-left coast: That’s right. The first set of rates were 25% below of what they should have been.
As the readers church mouse Ken280/KennyG, says but never in public, the NDP could never run a peanut stand. That is why he votes for the Green party.

Outraged at having to pay for all the bad drivers the pathetic licensing system has unleashed on our roads. Fix the testing and training, enforce the traffic laws properly and you will reduce crashes, why is this so difficult for the clowns in charge to see??

Runout: First – there was competition before ICBC. If you didn’t like the insurer you had, you could go to a different one. Can’t do that when there is only ONE government insurer (for basic) You don’t think competition works, compare the rates and rate increases for basic insurance versus the optional services where there is competition.
Second – Insurance rates were based on an actuarial basis for each age class. That meant that your rates were based on the number and cost of claims for your age class and marital status. Now the better drivers are subsidizing the younger (usually) less experienced ones. That’s fair? It also promotes irresponsible driving because there is less incentive to drive carefully.
But this is what you get with Progressive governments. There is precious little difference in the basic philosophies of those that claim to be on the ‘right’ and those on the ‘left’. Both major parties, the Fibs and the ‘they NDP’d our money away’, always put the interests of the government employees (I rarely use the term “workers”) over that of the taxpayer and small to medium sized businesses. Neither party will slash government in order to make it easier for the average taxpayer. Neither party will defend the taxpayer from the wishes of the public employees. Neither party will – like has to be done with everyone else – cut the size and cost of government when the income doesn’t meet the expenses. It’s not in their ‘genetics’. Hence I borrow the expression – right wing – left wing – same bird. And we keep fighting with each other – like we were supporting footballs teams – instead of addressing the real issues associated with bloated bureaucracies.
Where is that viable third party we need in this province?

You forgot to mention there are drivers on our roads with multiple at fault claims that can afford the $10000 premiums and paltry fines and don’t care.
This could be nipped in the bud a the time of testing if the test was stringent enough and they would not even be on the road, throw in means tested fines and we may see some progress to safer roads and lower insurance.

Runout: Sorry, I was trying to keep my posting short – I tend to write short books at times. Regarding the multiple fault demolition derby –
A few months ago, one of the ICBC brain children was asked (on one of the TV stations) why they didn’t just cancel policies of those with high claims. The response – but they are our best customers. And we wonder why we pay the big salaries to hire the best. NONE of these characters have a clue about business – but they know a ‘heck’ of a lot about protecting bureaucracy and using ‘services’ as a tax on the public.
Where is that viable third party?

I’ve got 33 years of safe driving, but continue to pay for bad drivers. I drive for a living and see 4 or 5 accidents a day. Most are caused by tailgating. Why do you need to be 3 feet off of someone’s bumper? Sit back 2 seconds.
Some people can’t read road signs and ICBC allows you to take you drivers test in another language. This makes no sense. Thats why we have commercial vehicles going through the tunnel in the left lane when there’s a billboard before you enter the tunnel to stay in the right lane.
Start fixing these little things before taking our money.